Under Section 55 Companies Act 2013, no company limited by shares shall issue preference shares which are:

1. Section 55(1) Companies Act 2013 PROHIBITS issue of IRREDEEMABLE preference shares — every preference share must be redeemable. 2. Section 55(2) prescribes a redemption period not exceeding TWENTY YEARS from the date of issue, EXCEPT for INFRASTRUCTURE PROJECTS (defined in Schedule VI), where the period may be up to THIRTY YEARS and the company may redeem a minimum of 10% per annum from the 21st year on a proportionate basis at the option of preference shareholders. 3. Sources of redemption: profits of the company, or proceeds of fresh issue of shares made for redemption. 4. Premium on redemption: from securities premium account or out of profits. 5. Hence option B is correct. _Source: Companies Act 2013 (Act 18 of 2013), Govt. of India MCA — Companies Act 2013, Section 55(1) and (2)_